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Nikkei Asia

How the chip shortage got so bad -- and why it's so hard to fix

How the chip shortage got so bad -- and why it's so hard to fix

Surging demand and political tension play havoc with global supply chains

  • 16.04.2021
  • min read

Nikkei Asia

How the chip shortage got so bad -- and why it's so hard to fix

Peter Hanbury, a partner with Bain & Co. and a specialist in technology supply chains, says the underlying issue is that fundamental demand has outstripped supply.

"In certain segments and technologies, the total demand is exceeding the total supply available, so we now face the even larger challenge of building more capacity -- which will take three to four years and cost billions -- instead of just reallocating within the existing capacity."

Nikkei Asia